The narrative around "free market orthodoxy" dominating American political thought for the last forty years is a myth perpetuated by journalists and academics. This piece critiques the role of government and media in shaping economic policies and their consequences, questioning the portrayal of free markets and government interventions in economic crises.
• False Narratives in Media: Publications like Time Magazine propagate the idea that the free market is no longer viable, often ignoring the complexities of economic downturns and the roles of government intervention.
• Historical Context: The article references the economic situation of the mid-1980s where government actions were blamed for crises, while free market proponents suggested that markets are the solution.
• Government's Role in Economic Instability: It argues that government policies contributed to economic booms and busts, notably the housing and stock market crises, challenging the notion that free markets are solely to blame for economic failures.
• Response to COVID-19: During the pandemic, private enterprises managed to deliver necessities despite government shutdowns, countering the idea that free markets are responsible for economic failures related to health crises.
• Ineffective Government Interventions: The article critiques how government interventions historically lead to further problems rather than resolving the initial issues. It argues this cycle continues with modern economic policies advocated by prominent figures and media.
• Economic Proposals and Outcomes: The piece discusses current proposals from the Biden administration centered on large public investments. It presents skepticism on their efficacy in fostering genuine economic growth compared to free market principles.
• Historical Economic Reforms: It highlights that major deregulation efforts in the late 1970s which addressed inflation were initiated by figures not typically associated with free market ideologies, illustrating a more complex economic history.
• Crisis Management through Spending: The article points to the reliance on government spending during economic downturns, claiming that this approach ignores the long-term implications and risks of significant borrowing.
The article concludes that previous economic thinkers such as Ludwig von Mises argued against building economies on lies, emphasizing the need for an economic framework rooted in truth and historical understanding rather than the revisions promoted by media and modern politicians. It posits that the current trajectory of economic policies will lead to inflation and economic instability, advocating for a reevaluation of these approaches grounded in past economic realities.
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